Seoul:Seoul shares closed higher on Monday, driven by institutional buying, as investors assessed concerns about the profitability of substantial investments in artificial intelligence (AI) infrastructure.
According to Yonhap News Agency, the Korean won also strengthened against the U.S. dollar. The benchmark Korea Composite Stock Price Index (KOSPI), after initially dropping 3.17 percent, climbed 99.96 points, or 1.76 percent, to close at 5,768.01, recovering from a low of 5,488.41.
Institutions purchased a net 574.66 billion won (approximately US$432 million) in shares, while foreign and retail investors sold a net 37.87 billion won and 1.09 trillion won, respectively. Investors exercised caution ahead of upcoming earnings reports from major companies like Tesla and Meta Platforms, as well as the U.S. midterm elections on November 3, amid ongoing uncertainties regarding interest rate forecasts.
IBK Securities noted that some investors appeared to buy large-cap stocks seeking bargains after recent sharp declines, pushing the index into positive territory despite reservations about heavy AI infrastructure spending. Technology stocks in Seoul contributed to the gains, with Samsung Electronics rising 1.16 percent to 218,000 won and SK hynix increasing 0.39 percent to 1.28 million won.
Hyundai Motor, a leading carmaker, surged 4.49 percent to 326,000 won, while defense company Hanwha Aerospace advanced 1.91 percent to 905,000 won. Conversely, HD Hyundai Heavy Industries, a prominent shipbuilder, saw a decline of 1.71 percent to 345,500 won, and Hanwha Ocean fell 1.23 percent to 64,200 won.
The Korean won was quoted at 1,330.3 won against the U.S. dollar as of 330 p.m., up from 1,331.4 won at the previous session's close.